1 00:00:07,001 --> 00:00:14,001 numbers, numbers, numbers. It's hard to imagine modern day horse racing without 2 00:00:14,001 --> 00:00:18,000 all the numbers and without all the computers that have to crunch those numbers. 3 00:00:18,001 --> 00:00:22,000 Computers that calculate odds and payoffs. Indeed computers have had a major 4 00:00:22,000 --> 00:00:25,001 effect on all kinds of gambling, not just horse racing. Everything from 5 00:00:25,001 --> 00:00:29,001 computerized slot machines in Vegas to massive databases for professional 6 00:00:29,001 --> 00:00:33,000 gamblers. Today we take a look at computers and gambling on this 7 00:00:33,000 --> 00:00:35,000 edition of the Computer Chronicles. 8 00:00:58,001 --> 00:01:02,001 The Computer Chronicles is made possible by Leading Edge, makers of IBM 9 00:01:02,001 --> 00:01:06,000 compatible computer systems including word processing with spelling correction, 10 00:01:06,001 --> 00:01:12,000 communication software and Haze compatible 1200 and 2400 VOD modems. Leading Edge 11 00:01:12,000 --> 00:01:14,000 with over 1000 service centers nationwide. 12 00:01:14,001 --> 00:01:19,000 Leading Edge leading the way to the information age. Additional funding is 13 00:01:19,000 --> 00:01:23,000 provided by McGraw Hill, publishers of Byte. Byte's detailed technical articles 14 00:01:23,000 --> 00:01:26,000 on new hardware, software and languages cover developments in 15 00:01:26,000 --> 00:01:28,000 computer technology worldwide. 16 00:01:34,000 --> 00:01:37,000 Welcome to the Computer Chronicles. I'm Stuart Chiffay and 17 00:01:37,000 --> 00:01:38,001 with me this week is George Morrow. 18 00:01:38,001 --> 00:01:41,001 George got kind of interested down there at the racetrack so I got a daily racing 19 00:01:41,001 --> 00:01:45,000 from here and this little computer. I enter all the data here from the racing 20 00:01:45,000 --> 00:01:48,001 form into the computer and the computer predicts which horses are most likely to 21 00:01:48,001 --> 00:01:52,000 win the race. We'll see if it works. Seems to be using a computer to figure out 22 00:01:52,000 --> 00:01:55,000 which horse is going to win a race is really the same thing as using a computer 23 00:01:55,000 --> 00:01:57,000 to figure out say which stock is going to win on Wall Street. 24 00:01:57,000 --> 00:02:01,000 I think you're right Stuart. People that do this for a living that give you odds 25 00:02:01,000 --> 00:02:05,001 and horses are handicappers. People that do the same thing or advise you about 26 00:02:05,001 --> 00:02:10,001 stocks. I think they admit to handicapping a stock. So here computers are helping 27 00:02:10,001 --> 00:02:13,000 you form judgments. They're an analytical tool. 28 00:02:13,001 --> 00:02:17,001 There's another aspect of gambling which is the chance part of it and there in 29 00:02:17,001 --> 00:02:20,001 games of pure chance I think computers are being used to help you entertain 30 00:02:20,001 --> 00:02:23,001 yourself as you put your money in these machines. George we're going to see both 31 00:02:23,001 --> 00:02:26,001 those examples in fact on the program. We're going to start out by taking a trip 32 00:02:26,001 --> 00:02:30,001 to Reno, Nevada to see how computers have revolutionized the casino business. 33 00:02:33,000 --> 00:02:38,001 Enormous casinos with extravagant neon displays. Stacks of cards and chips on 34 00:02:38,001 --> 00:02:44,001 green felt tables and clanging slot machines. These are the traditional symbols 35 00:02:44,001 --> 00:02:50,000 of gambling but in America's casino capitals poker chips are increasingly sharing 36 00:02:50,000 --> 00:02:55,000 the floor with microchips especially in the slot machines. Yeah the poker machine 37 00:02:55,000 --> 00:03:00,000 is a prime example of that which for all intents and purposes didn't even exist 38 00:03:00,000 --> 00:03:05,001 ten years ago and it's approximately 34 to 36 percent of the Nevada market today. 39 00:03:06,001 --> 00:03:11,001 At the International Gaming Technology Corporation in Reno, Nevada slot machines 40 00:03:11,001 --> 00:03:16,000 have little in common with their clanking mechanical ancestors. These slots are 41 00:03:16,000 --> 00:03:21,001 sophisticated PCs controlled by an Intel microprocessor and they feature special 42 00:03:21,001 --> 00:03:28,000 graphics and sound chips. They're even designed by computer. Putting a coin in 43 00:03:28,000 --> 00:03:32,000 the slot is almost like booting up. Basically when you put your money in the 44 00:03:32,000 --> 00:03:37,000 machine and let's take the example of a slot machine and you pull a handle at 45 00:03:37,000 --> 00:03:42,001 that point in time the microcomputer is programmed to pick a random number 46 00:03:42,001 --> 00:03:48,000 actually computer random number using a 32-bit random number generator. It will 47 00:03:48,000 --> 00:03:54,000 then take that 32-bit number and it will basically divide it down to a number 48 00:03:54,000 --> 00:03:59,000 which is within the range of the number of symbols on the real strips in the 49 00:03:59,000 --> 00:04:02,001 machine and it will determine what the outcome of the game is to be. 50 00:04:02,001 --> 00:04:08,000 Since the game's outcome is determined electronically the spinning reels are 51 00:04:08,000 --> 00:04:12,001 included just to preserve the traditional external appearance of the game an 52 00:04:12,001 --> 00:04:17,000 aspect of great importance to casino operators. In some cases the electronics 53 00:04:17,000 --> 00:04:24,000 scare them away to be specific if we have a real machine simulated 54 00:04:24,000 --> 00:04:29,000 on a video device and we have all kinds of animation and I think you may have 55 00:04:29,000 --> 00:04:34,000 seen some examples of that that didn't necessarily turn on the slot player it 56 00:04:34,000 --> 00:04:40,001 just was too much of a computer screen is our impression whereas in a poker game 57 00:04:40,001 --> 00:04:47,001 it's the same technology involved but they love that. Concealed 58 00:04:47,001 --> 00:04:52,001 within the friendly interface is a high level of electronic security such as 59 00:04:52,001 --> 00:04:57,000 optical readers that can tell if a coin is being dropped in or pulled out of the 60 00:04:57,000 --> 00:05:02,000 slot and sensors that detect if a door is open or if someone has tampered with 61 00:05:02,000 --> 00:05:07,000 the reels. Slot machines are tied into a local area network that transmits any 62 00:05:07,000 --> 00:05:12,000 discrepancies to the central computer room specifying the kind of fault and the 63 00:05:12,000 --> 00:05:18,000 machine's number. At the Harris Casino in Reno a game called Megabucks uses the 64 00:05:18,000 --> 00:05:22,001 latest in fiber optics and even satellite transmission to tie hundreds of 65 00:05:22,001 --> 00:05:28,000 machines together to a central jackpot computer as each coin drops the amount of 66 00:05:28,000 --> 00:05:33,000 the bet is transferred by fiber optic cable to the casinos computer center the 67 00:05:33,000 --> 00:05:38,001 mainframe recalculates and transmits the new jackpot to an LED display on the 68 00:05:38,001 --> 00:05:44,000 casino floor the same system operates between casinos around the state over a 69 00:05:44,000 --> 00:05:49,000 satellite link. Kino is another game that has been radically changed by computer 70 00:05:49,000 --> 00:05:54,001 processing while paper tickets are still written out by the player all data entry 71 00:05:54,001 --> 00:05:59,001 number reading and bet tabulation are done by computer which can process the 72 00:05:59,001 --> 00:06:06,000 results of the game in about 22 seconds. Harris machines are equipped with more 73 00:06:06,000 --> 00:06:10,001 than coin slots the new generation of one armed bandits is more like the 74 00:06:10,001 --> 00:06:15,001 automatic teller machine at a bank with some important differences you can't make 75 00:06:15,001 --> 00:06:21,000 withdrawals or deposits but the casino will issue personal identification cards 76 00:06:21,000 --> 00:06:23,000 to any interested customer. 77 00:06:35,001 --> 00:06:39,000 Joining us in the studio now is Robin Kabi. Robin's president of Computer Sports 78 00:06:39,000 --> 00:06:43,001 World and next to Robin is Roxy Roxborough. Roxy's an odds maker from Las Vegas 79 00:06:43,001 --> 00:06:47,000 and generally considered to be the top odds maker in the country. George. Robin, 80 00:06:48,001 --> 00:06:52,000 Computer Sports World is a database of sports statistics it's owned by the 81 00:06:52,000 --> 00:06:57,000 Chronicle. How does that work together? Well many newspapers in the last several 82 00:06:57,000 --> 00:07:01,001 years have wanted to get involved in new forms of communication and communication 83 00:07:01,001 --> 00:07:05,001 database services and Computer Sports World was one of those companies that was 84 00:07:05,001 --> 00:07:10,000 out there that was in a good market it was a good concept and it was something 85 00:07:10,000 --> 00:07:14,000 that the Chronicle was very interested in pursuing. This is almost a unique 86 00:07:14,000 --> 00:07:18,001 database. Is anybody else off or anything like this? Not exactly like this. We're 87 00:07:18,001 --> 00:07:22,000 an online database which means that if you have a computer and a modem or a 88 00:07:22,000 --> 00:07:26,001 communicating terminal you can sign on to us making a local phone call 24 hours a 89 00:07:26,001 --> 00:07:32,001 day. And Roxy you use this database. Yes it's an instrumental part of making the 90 00:07:32,001 --> 00:07:37,001 odds. What's your opinion of it? Well I think it's fantastic because it takes a 91 00:07:37,001 --> 00:07:41,001 lot of time away that I used to have to spend doing handwritten notes and keeping 92 00:07:41,001 --> 00:07:45,000 a lot of statistics. So it keeps track of everything that you need to know to 93 00:07:45,000 --> 00:07:48,000 make odds. Right and it files and organizes everything. Were you able in fact 94 00:07:48,000 --> 00:07:50,001 before you had computers and databases like this keep track of I mean the 95 00:07:50,001 --> 00:07:56,001 incredible volume of stats and numbers to make odds? Well we did we made do but 96 00:07:56,001 --> 00:08:00,000 we do a much better job now. So you feel that you're a lot more accurate having 97 00:08:00,000 --> 00:08:03,001 this database? Much more accurate and you know you have to remember the gamblers 98 00:08:03,001 --> 00:08:07,000 have this database too so that's one of the reasons we need to keep on top of it. 99 00:08:07,001 --> 00:08:10,000 Are you aware of people in the gambling business that 100 00:08:10,000 --> 00:08:11,001 use it as extensively as you do? 101 00:08:12,001 --> 00:08:17,000 Yes there are there are players gamblers that use it. Robin let's take a look at 102 00:08:17,000 --> 00:08:19,001 the system now and show us the kinds of things you can get out of this database. 103 00:08:19,001 --> 00:08:23,000 We're online right now to your service right? Right the first thing we're gonna 104 00:08:23,000 --> 00:08:27,000 want to do is right now we're looking at it live so we're watching the 105 00:08:27,000 --> 00:08:32,000 information come right in. The first thing is Scropper would say it's very easy 106 00:08:32,000 --> 00:08:37,001 to use you get you only go in by entering three-digit codes and you'll get a menu 107 00:08:37,001 --> 00:08:40,001 that looks like this that'll lead you to that. Right now we're looking at 108 00:08:40,001 --> 00:08:44,000 information coming in live if I'd like to look if I want to look at a matchup for 109 00:08:44,000 --> 00:08:47,001 example which is a file that Roxy uses quite a bit I type in three digits it 110 00:08:47,001 --> 00:08:51,001 immediately comes up. So you can go anywhere? This is an NCAA basketball matchup 111 00:08:51,001 --> 00:08:54,001 yes three digits. What do you get from that Roxy? Well here we have Georgia Tech 112 00:08:54,001 --> 00:08:58,000 at DePaul I see right away that DePaul's 13 and 0 at home that means they're 113 00:08:58,000 --> 00:09:01,000 unbeaten on their home court that's gonna make them a pretty good favorite even 114 00:09:01,000 --> 00:09:05,000 over a good ACC team like Georgia Tech. I can see that Georgia Tech's only six 115 00:09:05,000 --> 00:09:09,000 and six on the road it also shows me all their spread records and it shows me the 116 00:09:09,000 --> 00:09:12,001 last five games that each team's played. Okay so you can get home field advantage 117 00:09:12,001 --> 00:09:17,000 all that kind of stuff what about an NBA basketball show us an example there 118 00:09:17,000 --> 00:09:22,000 Robin. Well we got box score we could take a look at after each game is over we 119 00:09:22,000 --> 00:09:25,000 go over the box scores to make sure that all the key players were both teams 120 00:09:25,000 --> 00:09:29,001 played here's a game where San Antonio played Dallas last night. Now San 121 00:09:29,001 --> 00:09:32,001 Antonio's players are coming across right here where all their starters played 122 00:09:32,001 --> 00:09:39,000 and their major reserves and then we'll check Dallas. This is something you would 123 00:09:39,000 --> 00:09:42,000 do every day. Yes after each game is over. What does this show you? Well right 124 00:09:42,000 --> 00:09:46,000 now I see where Dallas is star point guard Derek Harper didn't play in fact he 125 00:09:46,000 --> 00:09:50,001 wasn't even a reserve so I'll have to find out why. Beautiful presentations. Okay 126 00:09:50,001 --> 00:09:53,001 and how do you do that what are you doing Robin? We go right to the injuries 127 00:09:53,001 --> 00:09:55,000 three one four the injuries from the NBA. Okay so you've got a special injury 128 00:09:55,000 --> 00:09:59,000 database. Right and then we'll check up to see if they have any reason maybe 129 00:09:59,000 --> 00:10:05,000 Harper didn't play last night for Dallas. Okay so let's get to Dallas. What's it 130 00:10:05,000 --> 00:10:09,000 tell you? Well it says that Harper's got an infected toe and also reserve guard 131 00:10:09,000 --> 00:10:12,001 Al Woods got a strained left shoulder. They both miss Friday's game they're 132 00:10:12,001 --> 00:10:16,000 expected to see limited action if any on Saturday so I know that when they play 133 00:10:16,000 --> 00:10:19,000 Golden State tonight I'll have to make some slight adjustment in the line. Okay 134 00:10:19,000 --> 00:10:23,000 what about baseball Robin that's a statistics crazy game what can you show us on 135 00:10:23,000 --> 00:10:28,000 baseball? Baseball let me show you the index of our baseball statistics. This is 136 00:10:28,000 --> 00:10:34,000 where we really have a lot of statistics baseball being so statistical and we do 137 00:10:34,000 --> 00:10:35,001 go back several years. Look at that yeah. 138 00:10:36,001 --> 00:10:39,001 So you can see how left-handed pitchers do versus right-handers how you do on 139 00:10:39,001 --> 00:10:45,000 AstroTurf versus grass how pitchers do after so many days off it's all there. And 140 00:10:45,000 --> 00:10:48,000 it's very easy to get that too. Yes three digits in here there. And Roxy you 141 00:10:48,000 --> 00:10:51,000 would use a lot of stuff and put your line on a baseball game? I use a lot of it. 142 00:10:51,000 --> 00:10:54,001 The keys are how teams do against righties and lefties and day night performance. 143 00:10:55,000 --> 00:10:57,000 Okay can you tell us who's going to win the pennant this year Robin? 144 00:10:57,000 --> 00:11:01,000 Uh we do have the odds on that we're probably one of the first up there Roxy 145 00:11:01,000 --> 00:11:04,001 provides that with us. Well if you're in New York or you'll probably be happy 146 00:11:04,001 --> 00:11:08,000 because we've got both New York teams favorite the Mets to repeat and win the 147 00:11:08,000 --> 00:11:11,000 National League there's seven to five favorites and the Yankees to be the 148 00:11:11,000 --> 00:11:14,001 American League champions are seven to two favorites. Roxy there's lots of 149 00:11:14,001 --> 00:11:17,001 different sports that people gamble on obviously I was wondering any particular 150 00:11:17,001 --> 00:11:20,001 sport in which the computer is really a big advantage? Yes it's the biggest 151 00:11:20,001 --> 00:11:25,000 advantage in college basketball because we have to chart and track 162 teams. 152 00:11:25,001 --> 00:11:29,000 There's thousands of variables there's injuries to chart for every team there's 153 00:11:29,000 --> 00:11:32,000 just so much that without this service it would be almost impossible. Huge 154 00:11:32,000 --> 00:11:35,001 database then. Yes. I guess Robin as you said you're the Dow Jones or the sports 155 00:11:35,001 --> 00:11:38,001 world. The sports world right. Robin Roxy thank you very much. As we saw at the 156 00:11:38,001 --> 00:11:42,000 beginning of the program horse racing depends very much on computers for its 157 00:11:42,000 --> 00:11:45,001 betting system and one of the newest and most modern computerized betting systems 158 00:11:45,001 --> 00:11:48,000 is here at Golden Gate Fields in the San Francisco Bay 159 00:11:48,000 --> 00:11:49,001 area. Wendy Woods has that report. 160 00:11:59,000 --> 00:12:03,000 While certain traditions at the track will never fall under the spell of 161 00:12:03,000 --> 00:12:08,000 technology the business of racetrack betting has it many fields been automated to 162 00:12:08,000 --> 00:12:13,000 a level as sophisticated as the nation's election system. Unlike the old days of 163 00:12:13,000 --> 00:12:18,001 just a few years ago relay systems and tallying by individual clerks have been 164 00:12:18,001 --> 00:12:23,001 replaced by massive computerized betting systems. Here at Golden Gate Fields in 165 00:12:23,001 --> 00:12:28,001 Albany California the odds the race results are up to three million dollars in 166 00:12:28,001 --> 00:12:33,001 bets placed daily pass through seven continuously operating phone lines to the 167 00:12:33,001 --> 00:12:39,000 brains of the operation a mainframe at the nearby Bay Meadows racetrack. Better's 168 00:12:39,000 --> 00:12:43,001 can still go face to face with humans for their wagers but the clerks all use 169 00:12:43,001 --> 00:12:48,001 terminals linked up to the system. The more adventurous better can use a self 170 00:12:48,001 --> 00:12:54,001 serve betting machine or the newest touch screen terminals. They bet and collect 171 00:12:54,001 --> 00:13:00,001 with vouchers that can be used for the entire day of winning or losing. Even the 172 00:13:00,001 --> 00:13:05,000 tote board on the track is controlled and automatically updated by this one 173 00:13:05,000 --> 00:13:10,001 computer system. Marty Miller of Amto is the brains behind the operation. It's 174 00:13:10,001 --> 00:13:15,001 actually very simple because we have access to the computer at Bay Meadows and I 175 00:13:15,001 --> 00:13:19,001 can go back to just any window in a plant here and tell them exactly where they 176 00:13:19,001 --> 00:13:23,000 stand with their wagers how many tickets they've sold what they have done in 177 00:13:23,000 --> 00:13:28,000 their last four transactions. Sometimes they forget where they are we can help 178 00:13:28,000 --> 00:13:33,000 them balance out. He adds computerized betting is not only efficient it's honest. 179 00:13:33,001 --> 00:13:37,000 Pointing to a year is every penny that we've ever handled in mutual handle has 180 00:13:37,000 --> 00:13:44,000 been accounted for. We know exactly what each clerk sells. We know exactly on the 181 00:13:44,000 --> 00:13:48,000 old system what they cashed. They would balance the penny. We would count the 182 00:13:48,000 --> 00:13:52,000 tickets, what the payoffs were, how much the state got. Every penny. Every penny 183 00:13:52,000 --> 00:13:56,000 has been accounted for over the years. Things haven't always gone this smoothly 184 00:13:56,000 --> 00:14:00,000 on the day that new cards were issued for the machines. The system crashed. 185 00:14:01,000 --> 00:14:05,000 Golden Gate fields officials soothed tempers by issuing free rain checks for a 186 00:14:05,000 --> 00:14:10,000 day that the computers were back up. Amto's computerized betting systems are 187 00:14:10,000 --> 00:14:14,001 installed in thousands of racetracks worldwide and that's a pretty good track 188 00:14:14,001 --> 00:14:19,000 record in Albany, California for the computer Chronicles. I'm Wendy Woods. 189 00:14:30,001 --> 00:14:34,001 With us in the studio now is Bob Archer president of PDS Software of Torrance, 190 00:14:34,001 --> 00:14:38,001 California. Next to Bob is Professor Michael Orkin co-founder of Best Bet 191 00:14:38,001 --> 00:14:45,001 Software. George. Mike, Roxy is a really good skilled odds maker and he seems 192 00:14:45,001 --> 00:14:49,001 to have an edge by looking at the data and understanding where he can get access 193 00:14:49,001 --> 00:14:53,000 to it but he doesn't seem to be using computers and doing any 194 00:14:53,000 --> 00:14:55,000 analysis. Can you comment on that? 195 00:14:55,000 --> 00:14:59,001 Well if he had a program that picked the lines and there was a bias in it, the 196 00:14:59,001 --> 00:15:03,000 betters would pick up on it, any slight bias and they would start betting 197 00:15:03,000 --> 00:15:08,000 accordingly and as a result he'd get locked into a system that would cause 198 00:15:08,000 --> 00:15:09,001 the book makers to lose. 199 00:15:10,001 --> 00:15:15,001 But couldn't he use a program to keep track of that and to modify that and to 200 00:15:15,001 --> 00:15:17,001 actually become a better odds maker? 201 00:15:17,001 --> 00:15:23,000 Well I'm sure he uses computers to keep up with data but if he had a program that 202 00:15:23,000 --> 00:15:28,000 actually picked the line he would have to keep modifying it because if there were 203 00:15:28,000 --> 00:15:30,001 any biases and maybe some would occur from time to time. 204 00:15:31,000 --> 00:15:34,000 But when he picks a line he's going through analysis. 205 00:15:35,001 --> 00:15:39,001 That's right but it's a very dynamic process and he has to keep up with what's 206 00:15:39,001 --> 00:15:43,000 going on and there's so many factors that for him to get locked into a program 207 00:15:43,000 --> 00:15:45,000 would be very dangerous. 208 00:15:45,000 --> 00:15:48,000 Right now he's doing better by staying away from a program. 209 00:15:48,001 --> 00:15:51,000 Right, he's doing better by staying away from a program that actually picks the 210 00:15:51,000 --> 00:15:53,001 line. However he's relying on computers to 211 00:15:53,001 --> 00:15:55,001 provide him with all of the data that he needs. 212 00:15:55,001 --> 00:15:59,000 Bob, you're handicapping horses now. Is that also a little bit subjective or 213 00:15:59,000 --> 00:16:00,001 can you really reduce that to statistics? 214 00:16:01,000 --> 00:16:07,001 No, it would always be subjective. The computer is an instrument whereby the user 215 00:16:07,001 --> 00:16:12,001 would be able to manipulate all the data to where he wants it so that he has it 216 00:16:12,001 --> 00:16:15,000 all in one mode to where he can use it to. 217 00:16:15,000 --> 00:16:17,000 You're actually making his selection from it. 218 00:16:17,000 --> 00:16:20,000 Show us what you would do with your software here in handicapping a race, Bob. 219 00:16:20,001 --> 00:16:26,000 Well, basically our program would work under a principle of entering the data 220 00:16:26,000 --> 00:16:31,000 from the racing form for each particular horse in this particular race today. 221 00:16:31,000 --> 00:16:32,000 So what kind of variables do you have there? 222 00:16:32,000 --> 00:16:38,000 Basically we have three variables for the race itself and 223 00:16:38,000 --> 00:16:39,001 approximately 11 variables for the horse. 224 00:16:39,001 --> 00:16:43,001 First you enter the horse's name, his number of starts, let's say, are 12. He's 225 00:16:43,001 --> 00:16:48,000 got three wins. He's got a total earnings of $67,890. 226 00:16:49,000 --> 00:16:54,000 And he's been away from the racetrack for 23 days. He was second, let's say, in 227 00:16:54,000 --> 00:16:56,000 his last race, had his first call. 228 00:16:56,000 --> 00:16:57,001 Again, this is information you're pulling off the data race form. 229 00:16:57,001 --> 00:17:01,000 Right out of the racing form, that's correct. His track category, let's say he's 230 00:17:01,000 --> 00:17:03,001 racing at Santa Anita, his track category would be number one. 231 00:17:03,001 --> 00:17:07,001 The distance in his furlongs, he went a mile, so it's going to be eight furlongs. 232 00:17:08,000 --> 00:17:11,001 His speed rating of his best race of the last three was 90, 233 00:17:12,000 --> 00:17:13,001 with a track variant of 12. 234 00:17:14,001 --> 00:17:18,001 He had a top 10 jockey on his back and his trainer rating was a 12.33. 235 00:17:19,001 --> 00:17:21,001 Okay. Now, we've now entered profiles for three different 236 00:17:21,001 --> 00:17:23,001 horses. Let's pretend it's a three horse race now. 237 00:17:24,000 --> 00:17:25,001 Can you go in and analyze these three horses now? 238 00:17:25,001 --> 00:17:31,001 Yes. We would, at this point, come up with the next screen. We'd enter zero, and 239 00:17:31,001 --> 00:17:35,000 it's going to calculate and put all three horses in their proper order. 240 00:17:35,000 --> 00:17:37,001 And you've got a power rating suggesting that Bosto is most 241 00:17:37,001 --> 00:17:39,000 likely to win the race among these two horses. 242 00:17:39,001 --> 00:17:45,000 Bosto, that is correct. Bosto is the favorite here. He has a power rating 243 00:17:45,000 --> 00:17:46,001 exceeding 12 points. 244 00:17:47,000 --> 00:17:51,000 We're looking for a three and a half point spread between the first horse and the 245 00:17:51,000 --> 00:17:53,001 second horse in order to have what we call a playable race. 246 00:17:53,001 --> 00:17:54,000 I see. 247 00:17:54,001 --> 00:17:57,001 It's subject to the handicapper's own personal biases at that point. 248 00:17:58,000 --> 00:18:00,000 Bob, what exactly is the software doing? How 249 00:18:00,000 --> 00:18:01,001 is it coming up with that rating for those horses? 250 00:18:02,000 --> 00:18:08,001 It is comparing the input of all the data on each individual item to a 251 00:18:08,001 --> 00:18:12,000 predetermined set of standards that it has to compare against. 252 00:18:12,001 --> 00:18:13,000 With a weighting factor? 253 00:18:13,000 --> 00:18:17,000 With a weighting factor to each one of them that then comes up and compares all 254 00:18:17,000 --> 00:18:18,001 10 of them horses against each other. 255 00:18:18,001 --> 00:18:22,000 Okay, Bob, if I can ask you to pass the keyboard over to Mike now. Mike, you've 256 00:18:22,000 --> 00:18:25,001 got a program that helps guide betting on football, not the horses, right? 257 00:18:25,001 --> 00:18:26,000 Right. 258 00:18:26,000 --> 00:18:27,000 And what does the software do? 259 00:18:27,001 --> 00:18:33,001 The software has every NFL game since 1979, and it provides its self-contained 260 00:18:33,001 --> 00:18:38,000 database that comes on one floppy disk, and it allows the person interested in 261 00:18:38,000 --> 00:18:42,000 football to ask questions about how teams have done in various situations. 262 00:18:42,000 --> 00:18:43,001 Show us the kinds of questions you'd ask it. 263 00:18:43,001 --> 00:18:48,001 Well, I've entered on the program now a look at all New York Giants games since 264 00:18:48,001 --> 00:18:52,001 1983, in which they lost the week before and played on the road the week before. 265 00:18:52,001 --> 00:18:54,000 And a better one might actually ask that question. 266 00:18:54,001 --> 00:18:57,000 Yes. This week the Giants might be playing at home. They lost last 267 00:18:57,000 --> 00:18:59,000 week. Maybe they really want to win. 268 00:18:59,001 --> 00:19:03,000 Notice they've won at the top and the left. They've won against a spread 269 00:19:03,000 --> 00:19:05,000 66.7% of the time. 270 00:19:05,000 --> 00:19:10,001 At the bottom they've won at home against a spread 61% of the time away against a 271 00:19:10,001 --> 00:19:12,001 spread two out of two games. 272 00:19:12,001 --> 00:19:16,001 You can also get a list of the games and see exactly what games were played under 273 00:19:16,001 --> 00:19:19,000 those conditions, what the spread was, 274 00:19:19,000 --> 00:19:20,001 whether they won or lost against the spread. 275 00:19:21,000 --> 00:19:23,000 Okay, Mike, things like, I suppose I had a question about 276 00:19:23,000 --> 00:19:24,001 what's the home field advantage on a Monday night game, right? 277 00:19:24,001 --> 00:19:30,000 Okay, you can look at day of the week. In fact, let's go down and do that and 278 00:19:30,000 --> 00:19:32,001 just look at all Monday night games since 1983. 279 00:19:33,001 --> 00:19:38,000 So day of the week is down there. I'll do. And in this case, the stats will come 280 00:19:38,000 --> 00:19:41,000 up just for the home team straight up and versus the [...] 281 00:19:41,000 --> 00:19:42,001 Is there a question for better? 282 00:19:42,001 --> 00:19:45,001 Well, it's one of the many things that a better wants to know about when 283 00:19:45,001 --> 00:19:47,001 trying to decide what team to pick. 284 00:19:47,001 --> 00:19:48,000 What's the program tell you? 285 00:19:48,001 --> 00:19:52,001 Well, that on Monday night the home team has beat the spread 59.4 286 00:19:52,001 --> 00:19:54,000 % of the time since 1983. 287 00:19:54,001 --> 00:19:55,001 So they got a little bit of an inch? 288 00:19:56,000 --> 00:19:58,001 Well, they have a little bit of knowledge there that they might put in with some 289 00:19:58,001 --> 00:20:00,000 other stuff that they'll also find on this database. 290 00:20:01,000 --> 00:20:04,000 Mike, how much of an advantage is it really for a better to have a piece 291 00:20:04,000 --> 00:20:05,001 of software like this and this kind of information? 292 00:20:05,001 --> 00:20:09,000 Well, it enables the better to answer a question in a couple of seconds. It might 293 00:20:09,000 --> 00:20:11,001 take them a few hours to do by hand or maybe 294 00:20:11,001 --> 00:20:13,000 not even to be able to answer at all. 295 00:20:13,001 --> 00:20:15,001 So his edge here is he's got a lot of data altogether. 296 00:20:16,000 --> 00:20:16,000 Right. 297 00:20:17,000 --> 00:20:20,000 Mike, Bob, thank you very much. Now, one of the most popular forms of gambling in 298 00:20:20,000 --> 00:20:22,000 this country is betting on state lotteries. 299 00:20:22,001 --> 00:20:25,000 One of the oldest and most sophisticated state lotteries is the one in 300 00:20:25,000 --> 00:20:27,001 Pennsylvania, where they use computers quite a bit. 301 00:20:28,001 --> 00:20:31,000 The Pennsylvania Lottery. 302 00:20:31,001 --> 00:20:35,001 Each year Pennsylvania sells more than a billion dollars in lottery tickets. 303 00:20:36,000 --> 00:20:40,000 And when the jackpot gets big enough, that can mean a sales volume of up to one 304 00:20:40,000 --> 00:20:42,000 million transactions an hour. 305 00:20:42,001 --> 00:20:44,001 None of this would be possible without computers. 306 00:20:45,000 --> 00:20:49,000 And indeed the Pennsylvania Lottery has a massive investment in computers. 307 00:20:50,000 --> 00:20:52,001 Retailers sell lottery numbers from online terminals. 308 00:20:52,001 --> 00:20:57,001 Computers recreate each day's games on a separate IBM backup system to 309 00:20:57,001 --> 00:20:59,000 ensure the integrity of the games. 310 00:20:59,001 --> 00:21:03,000 Computers are used to analyze sales, project jackpots and 311 00:21:03,000 --> 00:21:04,001 to monitor the actual betting. 312 00:21:05,001 --> 00:21:09,001 The Pennsylvania Lottery, in fact, runs one of the most complex computer networks 313 00:21:09,001 --> 00:21:13,000 with nearly 3000 terminals on a controlled data system. 314 00:21:13,000 --> 00:21:17,000 The system has 100 percent redundancy and a hot backup. 315 00:21:17,000 --> 00:21:20,000 So one rarely hears that the computer is down. 316 00:21:20,000 --> 00:21:25,001 In 10 years, and your viewers would be interested to know that our uptime is 99 317 00:21:25,001 --> 00:21:27,001 .98 percent. 318 00:21:28,000 --> 00:21:31,001 As close to perfection as you possibly could get with an online system. 319 00:21:32,000 --> 00:21:38,000 I don't remember a major downtime since 1977 when we first began. 320 00:21:38,001 --> 00:21:42,001 One of the primary functions of the computer system is to constantly monitor the 321 00:21:42,001 --> 00:21:46,000 lottery's payoff liability to make sure that no one can break the bank. 322 00:21:46,000 --> 00:21:51,000 On the big four game, which pays odds of 5000 to one, the computer makes sure 323 00:21:51,000 --> 00:21:54,000 that the state is never exposed to a liability in excess of 324 00:21:54,000 --> 00:21:55,001 5 million dollars per game. 325 00:21:56,000 --> 00:22:00,001 If it senses heavy betting on one particular number, in this case 1111, it sends 326 00:22:00,001 --> 00:22:03,001 out a warning and then cuts off betting on that number. 327 00:22:04,000 --> 00:22:08,000 Heavy betting on a particular number often occurs because lottery players tend to 328 00:22:08,000 --> 00:22:10,000 follow common patterns in picking numbers. 329 00:22:10,000 --> 00:22:15,001 For example, years ago when Pete Rose was with Philadelphia and he had his 330 00:22:15,001 --> 00:22:19,000 certain number of hits, they played that number. 331 00:22:19,000 --> 00:22:23,000 They played the Super Bowl score. They played the Jewish New 332 00:22:23,000 --> 00:22:25,000 Year. They played the Chinese New Year. 333 00:22:25,001 --> 00:22:29,001 While the computer system assures a random drawing every time, the law of 334 00:22:29,001 --> 00:22:31,000 averages takes a while to work. 335 00:22:31,001 --> 00:22:36,000 We've had over 3100 daily number drawings, pick three drawings, in 10 years. 336 00:22:36,000 --> 00:22:42,000 However, there are two or three dozen numbers that haven't come up out of 3100 337 00:22:42,000 --> 00:22:44,000 drawings and there are only a thousand numbers. 338 00:22:44,001 --> 00:22:47,000 The lottery's computers have many safeguards to 339 00:22:47,000 --> 00:22:48,001 protect against being broken into. 340 00:22:49,000 --> 00:22:54,000 Games are shut down exactly 168 seconds prior to the winning drawing so that 341 00:22:54,000 --> 00:22:56,000 all computer tapes can be removed. 342 00:22:56,000 --> 00:22:59,000 That way no one can enter a winning number after the drawing. 343 00:22:59,000 --> 00:23:04,000 And the computer experts here actually hire hackers and challenge them to try to 344 00:23:04,000 --> 00:23:08,000 break in so that they can spot any weaknesses which may exist in the system. 345 00:23:08,001 --> 00:23:12,001 Seven years ago, the Pennsylvania lottery did fall victim to a scandal, but 346 00:23:12,001 --> 00:23:14,000 it had nothing to do with the computers. 347 00:23:14,001 --> 00:23:18,000 Most of the balls which are used in the drawings were weighted so that only 348 00:23:18,000 --> 00:23:20,000 sixes would rise to the top. 349 00:23:20,000 --> 00:23:24,000 But a slow motion analysis of the drawing, coupled with detailed computer 350 00:23:24,000 --> 00:23:26,000 analysis, led investigators to the culprits. 351 00:23:26,000 --> 00:23:32,000 Offline processing showed exactly where these bets were coming from. 352 00:23:33,000 --> 00:23:36,001 We went to those retailers, found out who was sitting in the white Cadillac 353 00:23:36,001 --> 00:23:39,001 placing all those bets, and basically were able to 354 00:23:39,001 --> 00:23:41,001 convict on the computer evidence. 355 00:23:42,000 --> 00:23:45,000 But despite all the computers, when it comes to calculating the 356 00:23:45,000 --> 00:23:47,001 payoffs, no one trusts the computers. 357 00:23:48,000 --> 00:23:51,000 The numbers are crunched manually with a good old-fashioned desk 358 00:23:51,000 --> 00:23:53,001 calculator, some paper, and a pencil. 359 00:23:53,001 --> 00:23:56,000 When you're sitting alone in the middle of the night giving away millions of 360 00:23:56,000 --> 00:23:59,000 dollars, you have to be absolutely sure you're doing it perfectly. 361 00:24:00,000 --> 00:24:04,000 And that's our look at computers and gambling. We'll be back in just a minute 362 00:24:04,000 --> 00:24:05,001 with this week's Computer News. 363 00:24:16,001 --> 00:24:20,000 I'm Susan Shea, sitting in for Stuart Chafee in the Random Access File this week. 364 00:24:20,000 --> 00:24:24,000 NCR Corporation unveiled a new line of personal computers. 365 00:24:24,000 --> 00:24:29,001 NCR introduced two AT compatibles, one 286 machine and one 386 workstation. 366 00:24:30,000 --> 00:24:34,000 The machines are based on NCR's incremental workstation architecture, and 367 00:24:34,000 --> 00:24:35,001 they'll be available later this year. 368 00:24:36,001 --> 00:24:40,000 Hewlett Packard announced three new technical computers and said that the 930 and 369 00:24:40,000 --> 00:24:45,000 950 business computers announced in 1986 will finally ship this fall. 370 00:24:45,000 --> 00:24:49,000 All five of the computers are based on the technology of reduced instruction 371 00:24:49,000 --> 00:24:50,001 set computing, or RISC. 372 00:24:51,000 --> 00:24:54,000 Digital equipment and Cray research will soon introduce a new 373 00:24:54,000 --> 00:24:55,001 interface between their computers. 374 00:24:56,000 --> 00:25:00,001 The new product, a combination of digital hardware and Cray software, is part of 375 00:25:00,001 --> 00:25:03,001 an effort to speed up data transfer between the two companies' computers. 376 00:25:04,000 --> 00:25:08,000 Digital will market the interface in an effort to step up pressure on IBM in 377 00:25:08,000 --> 00:25:09,001 the scientific computing market. 378 00:25:10,001 --> 00:25:13,001 And now it's time for this week's Software Review, and here's Paul Schindler. 379 00:25:14,000 --> 00:25:19,001 You know, maybe I would be better at this if I'd had a computer when I was young. 380 00:25:20,000 --> 00:25:24,000 Well, to help your kids do better, here's some top-flight Macintosh educational 381 00:25:24,000 --> 00:25:28,000 software, KidsTime, a collection of five educational games. 382 00:25:29,000 --> 00:25:33,000 Now, first there's Connect the Dots. When you're done, the computer redraws it. 383 00:25:33,001 --> 00:25:37,001 Then there's A.B. Key, which takes advantage of the max sophisticated sound. 384 00:25:38,000 --> 00:25:40,000 It names the letters your child types. 385 00:25:41,000 --> 00:25:45,001 Match It is a matching game with logic. It starts with a robot puzzle. 386 00:25:46,000 --> 00:25:49,000 Each piece you get wrong, the computer pulls back out. 387 00:25:50,000 --> 00:25:52,001 KidsNotes will play a song and will also allow you to 388 00:25:52,001 --> 00:25:54,000 compose and record your own. 389 00:25:56,000 --> 00:26:00,000 Storywriter reads the story as you write it or all at once at the end. 390 00:26:00,000 --> 00:26:03,001 I saw [...] left with a human. 391 00:26:06,000 --> 00:26:10,001 KidsTime is world-class educational software for the Apple Macintosh, $50 from 392 00:26:10,001 --> 00:26:13,000 Great Wave Software in Stanford, California. 393 00:26:13,001 --> 00:26:15,001 For the Computer Chronicles, I'm Paul Schindler. 394 00:26:17,000 --> 00:26:20,000 News from the Spring Index in Atlanta has started to trickle in. 395 00:26:20,001 --> 00:26:24,001 Sharp plans to introduce two portables, one a clone of the PC-AT called the PC 396 00:26:24,001 --> 00:26:29,001 -7200, and the other the PC-4500 is compatible with the PC-XT. 397 00:26:30,000 --> 00:26:32,001 And Samsung will show off its new clones. 398 00:26:33,000 --> 00:26:36,001 The SAM-88T is designed to be XT compatible and the SAM-286 399 00:26:36,001 --> 00:26:38,001 is an AT compatible machine. 400 00:26:39,000 --> 00:26:43,000 Finally, Japanese companies are working on a new method of software distribution 401 00:26:43,000 --> 00:26:45,001 that is designed to eliminate software piracy. 402 00:26:46,000 --> 00:26:50,000 Called the Software Service System, the product is a box that attaches to 403 00:26:50,000 --> 00:26:52,001 existing computers or could be built into new computers. 404 00:26:52,001 --> 00:26:56,001 Software would not run on the computer until the box authorized it. 405 00:26:57,000 --> 00:27:00,001 Users would purchase a special card to activate the box and give credit for any 406 00:27:00,001 --> 00:27:02,000 software the user wanted to buy. 407 00:27:02,001 --> 00:27:06,000 Users would be encouraged to copy software but be prevented from using 408 00:27:06,000 --> 00:27:07,001 it without paying for it. 409 00:27:07,001 --> 00:27:09,001 And that's it for this week's Computer Chronicles. 410 00:27:13,001 --> 00:27:17,001 The Computer Chronicles is made possible by Leading Edge, makers of IBM 411 00:27:17,001 --> 00:27:21,000 -compatible computer systems, including word processing with spelling correction, 412 00:27:21,001 --> 00:27:25,001 communication software, and Haze-compatible 1200 and 2400 VOD modems. 413 00:27:26,000 --> 00:27:28,001 Leading Edge with over 1,000 service centers nationwide. 414 00:27:29,001 --> 00:27:32,000 Leading Edge, leading the way to the information age. 415 00:27:32,001 --> 00:27:35,001 Additional funding is provided by McGraw-Hill, publishers of Byte. 416 00:27:36,001 --> 00:27:40,000 Byte's detailed technical articles on new hardware, software, and languages cover 417 00:27:40,000 --> 00:27:42,001 developments in computer technology worldwide. 418 00:28:18,001 --> 00:28:21,001 www.mooji.org